Terms : Hide Images
| 13800091915 | GDP | the dollar value of all final goods and services produced within a country's borders in a given year | 0 | |
| 13800097077 | GDP per capita | GDP divided by population | 1 | |
| 13800100875 | intermediate goods | goods used in the production of final goods | 2 | |
| 13800113468 | Not included in GDP | - intermediate goods and services - inputs - used goods - financial assets like stocks and bonds - foreign-produced goods and services | 3 | |
| 13800125384 | GDP calculation expenditure approach | Y= C+I+G+(X-IM) GDP= Private consumption+ Investment+ Government+(Exports-Imports) | 4 | |
| 13800135529 | Nominal GDP | GDP not adjusted for inflation | 5 | |
| 13800140958 | real GDP | GDP adjusted for inflation | 6 | |
| 13800151031 | unemployment | people actively looking for a job | 7 | |
| 13800157478 | unemployment rate | the percentage of the labor force that is unemployed | 8 | |
| 13800163747 | frictional unemployment | unemployment that occurs when people take time to find a job/between jobs | 9 | |
| 13800167475 | structural unemployment | unemployment that occurs when a workers skills are obsolete | 10 | |
| 13800183888 | cyclical unemployment | unemployment that rises during economic downturns and falls when the economy improves | 11 | |
| 13800190397 | natural rate of unemployment | frictional unemployment + structural unemployment | 12 | |
| 13800197034 | full employment output | the real GDP created when there is no cyclical unemployment | 13 | |
| 13800197035 | inflation | prices rise over time | 14 | |
| 13800201010 | Disinflation | prices increase at slower rates | 15 | |
| 13800212233 | people hurt by inflation | lenders with fixed interest rates, people with fixed incomes, savers | 16 | |
| 13800219925 | people helped by inflation | -borrowers -a business where the price of the product increases faster than the price of resources | 17 | |
| 13800224141 | nominal wage | not adjusted for inflation | 18 | |
| 13800228999 | real wage | adjusted for inflation | 19 | |
| 13800288413 | inflation rate | percent change in prices year to year | 20 | |
| 13800327626 | price indices | index numbers assigned to each year that show how prices have changed relative to a specific base year | 21 | |
| 13800407798 | consumer price index | price of market basket divided by price in base year, times 100 | 22 | |
| 13800472189 | 3 causes of inflation | 1. The Government Prints TOO MUCH Money (The Quantity Theory) 2. DEMAND-PULL INFLATION 3. COST-PUSH INFLATION | 23 | |
| 13800493597 | velocity of money | the average number of times each dollar in the money supply is used to purchase goods and services included in GDP | 24 | |
| 13800511116 | quantity theory of money | MV=PY | 25 | |
| 13800606583 | aggregate demand | all the goods and services (real GDP) that buyers are willing and able to purchase at different price levels | 26 | |
| 13800868199 | Shifters of Aggregate Demand | anything that affects C,I,G,Xnet | 27 | |
| 13800888615 | aggregate supply | the amount of goods and services that firms will produce in an economy at different price levels | 28 | |
| 13800894232 | short-run aggregate supply curve | wages and resource prices will not increase as price level increases | 29 | |
| 13800904536 | long-run aggregate supply curve | wages and resource prices will increase as price level increases | 30 | |
| 13800920697 | Shifters of Aggregate Supply | 1. Resource Prices or inflationary expectations 2. Actions of the Government (ex: taxes, regulations) 3. Productivity | 31 | |
| 13800937305 | AD/AS at full employment |  | 32 | |
| 13800943164 | AD/AS with inflationary gap |  | 33 | |
| 13800947193 | AD/AS with recessionary gap |  | 34 | |
| 13800954442 | phillips curve | a curve that shows the short-run trade-off between inflation and unemployment |  | 35 |
| 13800963477 | when aggregate supply shifts... | short run phillips curve shifts opposite way | 36 | |
| 13800969118 | when aggregate demand shifts... | movement along the short run phillips curve occurs | 37 | |
| 13800989524 | fiscal policy | actions by congress to stabilize the economy | 38 | |
| 13801012312 | discretionary fiscal policy | congress passes a new bill or law | 39 | |
| 13801018945 | non-discretionary fiscal policy | Permanent spending or taxation laws enacted to work counter cyclically to stabilize the economy | 40 | |
| 13801027744 | contractionary fiscal policy | decrease government spending or increase taxes | 41 | |
| 13801048970 | expansionary fiscal policy | increase government spending or decrease taxes | 42 | |
| 13801055650 | autonomous consumption | income used for necessities | 43 | |
| 13801064548 | disposable income | income (after taxes) that is available to you for saving or spending | 44 | |
| 13801069040 | dissaving | income is less than autonomous spending | 45 | |
| 13801082201 | the multiplier affect | shows how spending is magnified in an economy | 46 | |
| 13801093072 | Marginal Propensity to Consume (MPC) | change in consumption divided by change in income | 47 | |
| 13801100942 | Marginal Propensity to Save (MPS) | change in savings divided by change in income | 48 | |
| 13801117200 | MPC + MPS = | 1 | 49 | |
| 13801120809 | spending multiplier | 1/MPS | 50 | |
| 13801124576 | Tax Multiplier | MPC/MPS | 51 | |
| 13801130390 | crowding out effect | when government deficit spends, the demand for loanable funds increases, causing interest rates to rise and crowding out other investors, thus decreasing investment. | 52 | |
| 13801155768 | barter system | a system of exchange in which goods or services are traded directly for other goods or services without the use of money. | 53 | |
| 13801155769 | commodity money | something that performs the function of money and has intrinsic value | 54 | |
| 13801172681 | fiat money | used as money but has no other value | 55 | |
| 13801177024 | 3 functions of money | medium of exchange, unit of account, store of value | 56 | |
| 13801181474 | financial sector | Network of institutions that link borrowers and lenders including banks, mutual funds, pension funds, and other financial intermediaries | 57 | |
| 13801181475 | assets | anything tangible or intangible that is owned | 58 | |
| 13801189673 | liability | anything that is owed | 59 | |
| 13801194671 | loan | agreement between a lender and borrower, with an interest rate | 60 | |
| 13824791459 | real interest rate | nominal interest rate - inflation rate | 61 | |
| 13824794424 | liquidity | the ease with which an asset can be converted into the economy's medium of exchange | 62 | |
| 13824806805 | m1 money | Cash in Circulation, Money in demand deposits (debit card), Travelers Checks | 63 | |
| 13824808531 | m2 money | M1 plus savings accounts, money market accounts, and other near monies | 64 | |
| 13824810645 | bonds | loans to firms in the form of an IOU that pays interest | 65 | |
| 13824814336 | stocks | shares of ownership in a company | 66 | |
| 13824816706 | when interest rates increase, bond prices: | decrease | 67 | |
| 13824821252 | when interest rates decrease, bond prices: | increase | 68 | |
| 13824827864 | the money market | demand and supply of money | 69 | |
| 13824830227 | transaction demand for money | money held for the purpose of making everyday market purchases | 70 | |
| 13824834520 | asset demand for money | people hold money since it is less risky than other assets | 71 | |
| 13824840301 | money market graph |  | 72 | |
| 13824849809 | demand shifters in money market | changes in PL, changes in income | 73 | |
| 13824873016 | supply of money market | set by the fed | 74 | |
| 13824939344 | fed actions | reserve requirement, lowering and raising discount rates, buying and selling bonds (open market operations) | 75 | |
| 13824935300 | expansionary monetary policy | Federal Reserve system actions to increase the money supply, lower interest rates, and expand real GDP; an easy money policy. | 76 | |
| 13989600700 | contractionary monetary policy | Federal Reserve system actions to decrease the money supply, increase interest rates, and lower GDP | 77 | |
| 13989673387 | loanable funds market | the private sector supply and demand of loans | 78 | |
| 13989678465 | loanable funds demand shifters | 1. Changes in perceived business opportunities 2. Changes in gov't borrowing 3. Gov't deficit/surplus | 79 | |
| 13989682133 | loanable funds supply shifters | 1. Changes in private savings behavior 2. Changes in public savings 3. Changes in foreign investment 4. Changes in expected profitability | 80 | |
| 13989689385 | net exports | exports - imports | 81 | |
| 13989689386 | trade surplus | exports > imports | 82 | |
| 13989695502 | trade deficit | imports > exports | 83 | |
| 13989699875 | balance of payments | summary of a country's international trade | 84 | |
| 13989702559 | current account | goods and services, investment income, net transfers | 85 | |
| 13989705013 | financial account | financial assets that are recurring | 86 | |
| 13989709169 | foreign direct investment | when a foreign company buys a business in another country | 87 | |
| 13989714537 | net capital outflow | foreign assets - domestic assets | 88 | |
| 13989718985 | financial account surplus | inflow > outflow | 89 | |
| 13989724023 | financial account deficit | outflow > inflow | 90 | |
| 13989761268 | if the current account has a deficit: | the financial account must have a surplus | 91 | |
| 13989844354 | if interest rate increases | inflow increases, outflow decreases | 92 | |
| 13989847067 | if interest rate decreases | inflow decreases, outflow increases | 93 | |
| 13989858145 | depreciation | loss of value of a country's currency with respect to a foreign currency, net exports increase | 94 | |
| 13989862830 | appreciation | increase of value of a country's currency with respect to a foreign currency, net exports decrease | 95 | |
| 13989870027 | foreign exchange shifters | changes in tastes, relative income, relative price level, and relative interest rates | 96 | |
| 13989898015 | changes in relative income | Increase: more imports, demand for other country's money increases Decrease: less imports, demand for other country's money decreases | 97 | |
| 13989925988 | floating exchange rate | the market determines the value of the country's currency | 98 | |
| 13989931143 | fixed exchange rate | The government activity manages the country's currency | 99 |
